In the letter
- Crypto management company Bitwise announced today that its 10 Crypto Index Fund is live. This makes it the first publicly traded crypto index fund in the US.
- The fund tracks the 10 largest cryptocurrencies.
- Bitwise still had no luck approving a Bitcoin ETF in the US.
Crypto management company Bitwise asset management announced today that the stocks of its 10 Crypto Index Fund are live.
Known as The Fund, the crypto index tracks the 10 largest cryptocurrencies and enables investors – both retail and accredited investors – to buy stocks that they represent. It is billed as the first publicly traded crypto index fund in the US. The ticker symbol on the OTCQX over the counter stock market is “BITW”.
The fund debuted today with $ 120 million in assets under management. Most of the assets are Bitcoin– around 75% – with 13% in ether and the remaining 12% split up XRP, Litecoin, Chain link, Tezos, Bitcoin Cash, Stellar, and EOSaccording to Bitwise.
Matt Hougan, Bitwise’s chief investment officer, said cryptocurrency was the “best performing asset class in the world” this year.
And he’s right: Bitcoin delivers a higher return than a range of investments – gold, real estate, and stocks – over a four-year period. according to the research results from the analysis firm Messari.
Hougan added, “The start of public trading in BITW stock will make it a lot easier for financial advisors, family offices, individuals and institutional funds to allocate the space. We believe the fund offers a robust one-stop solution. “
The fund is run by a committee and an expert advisory board. The idea is that investors can put their money in crypto without having to deal with buying and storing the digital assets.
Despite launching the first crypto index fund for US investors, Bitwise is struggling to get approval for a Bitcoin ETF rejected by the SEC multiple times.
A Bitcoin ETF tracks or follows the price of Bitcoin, so people wishing to speculate on the price of BTC can do so without having to own the asset themselves. ETFs differ from index funds in that, like stocks, they can be constantly traded throughout the day, while index funds can only be bought and sold at a daily fixed price.